Smartphone video adspend surged in 2017, latest data shows

Advertisers spent an extra £476m on smartphone video ads last year - a 69% increase on 2016 - according to the latest Digital Adspend report by the Internet Advertising Bureau UK and PwC.

Smartphone video adspend surged in 2017, latest data shows

This took the total spent on the format to £1.17bn – while total video spend grew 47% to £1.61bn.

Smartphone video accounted for a third of the overall increase in digital adspend, which was up 14.3%, from £10.1bn to £11.6bn.

Spend on all smartphone advertising – including video, display, native and search – grew by 37.4% to £5.2bn, meaning smartphones now account for 45% of all digital adspend. This is up from 37% last year, and from just 9% five years ago.

If this trend continues, over half of digital adspend will go on smartphones in 2018. According to data from Ukom/ComScore, smartphones accounted for 59% of online time in the final quarter of 2017 – meaning share of spend still lags share of time.

Within video, spend on outstream video almost doubled to £900m, helping it overtake pre/post-roll (up 11% to £671m) as the larger video format.

Social media spend grew 38% to £2.39bn, with 83% of social budget now going to smartphones.

And of the £3.84bn spent on display advertising, 80% was traded programmatically – up from 72% in 2016.

The IPA Bellwether Report, published last week, found that digital marketing spend in the first quarter of 2018 grew at 8.7%, down from 10.9% the previous quarter.

Tim Elkington, chief digital editor at the IAB, said: "Digital has led to a change in consumer behaviour as people use their smartphone for a wider variety of things. The ad community has responded to this change – particularly the growth of mobile and video – by developing dynamic ad products that fit seamlessly into their environment.

"There have been growing pains within the industry so we’re focused on building a sustainable future for advertising through initiatives such as the IAB Gold Standard, which aims to reduce ad fraud, improve the digital ad experience and increase brand safety."